Whale Gambles $16M on Leveraged BTC and ETH Longs
On-chain data reveals that prominent crypto investor Jeffrey Huang, known as “Machi Big Brother,” has established new high-risk positions in the market. He opened a 40x leveraged long position on Bitcoin alongside a 25x leveraged long on Ethereum. The total value of these aggressive bets stands at approximately $15.98 million, signaling a strong conviction in a near-term price increase for the two largest cryptocurrencies.
Trader's History Includes $75M in Recent Liquidations
This latest high-stakes trade is set against a backdrop of staggering recent losses. Over the past six months, Huang has earned the nickname “King of Crypto Liquidations” by losing an estimated $75 million through a series of ill-fated, high-leverage trades on the Hyperliquid exchange. His strategy, characterized by relentlessly doubling down on over-leveraged ETH longs, resulted in more than 250 liquidation events. One notable incident during a March flash crash saw an $11 million position wiped out, pushing his account balance toward zero before he reloaded capital.
High-Leverage Bets Pose Market-Wide Cascade Risk
The immense size and leverage of Huang's new positions introduce a significant source of potential market volatility. While some traders may interpret his actions as a bullish signal from a major market participant, his history of being forcibly liquidated creates a clear and present risk. Should the prices of Bitcoin or Ethereum dip, a forced sale of his $16 million position could trigger a cascading effect, driving prices down further as other leveraged positions are automatically closed. This makes Huang's trading activity a key factor for market participants to monitor, as his failure could amplify any downward price movements.
